With a white hot real estate market in the BC Southern Interior, the values of single detached family homes have priced some people out of the market. As a result, buyers and investors are shifting attention to condominiums, especially in the Penticton area where there is an exquisite balance of desirable inventory and affordability. The average price for a condo in the resort community of the South Okanagan is less than $390,000. Compare that to Central Okanagan at $516,000 or for a laugh – Greater Vancouver where prices have increased 16% year-over-year to $808,000. Again, a mortgage for a condo in Penticton starts to make a lot of sense, in one’s dreams and on paper. Below is a breakdown of a few key things to consider before proceeding with your pre-approval.
What You Need to Know About Getting a Mortgage on a Condominium in the BC Southern Interior
You Probably Qualify for a First Time Buyer Program
A condominium is a logical choice for most first time buyers. If you’re one of them, you’ll be very pleased to know that there are lucrative programs available to you as a new buyer. These programs may effectively reduce your downpayment requirements. You may also qualify for RRSP home buyer plans, first-time buyer tax credits, new housing rebates, and even green home programs. Contact us today to find out which program/s you qualify and which are best suited to your goals for owning a condo.
Very Affordable, But Act Quickly
As addressed above, condos in Penticton and the BC Southern Interior remain very affordable despite the massive demand for homes (all homes) in the region. But this may not remain the case if you wait too long. Reduced inventory of single detached homes has increased the price. As more buyers swoop in to scoop up multi-residential properties, the inventory for condominiums will tighten too. At this point, the rules of supply and demand insert themselves into the market, which will drive up the prices of condominiums. That’s one reason to act fast. The other, is the fact that the Bank of Canada has raised the overnight rate for the first time in over two-years. While the increase is negligible, the Bank is expected to incrementally raise the rate in the months ahead, which will increase variable mortgage rates. 5-year fixed rates will also rise as the economy grows and stabilizes. That’s two big reasons to get pre-approved on your condo mortgage today.
STR (something to think about)
Still unsure? We’ve got something else for you to consider. Condos are a commodity on the short term rental (STR) market around the Southern Okanagan Valley. Households from all over the province, country, and even south of the border are chomping at the bit to spend a week, two, or more in the community. As a traveler yourself, you can use your time away from your new condo, and rent it out (via Airbnb, VRBO, etc.) for as long as you’re away. Most people wait to buy a second home to take advantage of STR platforms, but you’re buying in the right place, at the right time. Not only does your condo allow you to earn equity and revenue, the latter can help you pay down your mortgage. View more on how to use Airbnb to pay your mortgage.
The Importance of Working with a Mortgage Broker
You’re convinced that a condo mortgage in Penticton is a great idea. It is. However, we encourage you to increase your buying power to find the condo you actually want. The right mortgage broker can make that happen. With long standing ties with banks and alternative lenders Carloni Mortgage Brokers can get you access to lower unadvertised rates and preferred terms. Contact us today to find out how.